§ 105-151.11. (Repealed effective for taxable years
beginning on or after January 1, 2014 - see note) Credit for child care and
certain employment-related expenses.

(a) Credit. - A person who is allowed a credit against
federal income tax for a percentage of employment-related expenses under
section 21 of the Code shall be allowed as a credit against the tax imposed by
this Part an amount equal to the applicable percentage of the employment-related
expenses as defined in section 21(b)(2) of the Code. In order to claim the
credit allowed by this section, the taxpayer must provide with the tax return
the information required by the Secretary.

(a1) Applicable Percentage. - For employment-related
expenses that are incurred only with respect to one or more dependents who are
seven years old or older and are not physically or mentally incapable of caring
for themselves, the applicable percentage is the appropriate percentage in the
column labeled "Percentage A" in the table below, based on the
taxpayer's adjusted gross income determined under the Code. For employment-related
expenses with respect to any other qualifying individual, the applicable
percentage is the appropriate percentage in the column labeled "Percentage
B" in the table below, based on the taxpayer's adjusted gross income
determined under the Code.

Filing Status Adjusted Gross Percentage
A Percentage B

Income

Head of Up to $20,000 9% 13%

Household

Over $20,000

up to $32,000 8% 11.5%

Over $32,000 7% 10%

Surviving

Spouse or

Joint Return Up to $25,000 9% 13%

Over $25,000

up to $40,000 8% 11.5%

Over $40,000 7% 10%

Single Up to $15,000 9% 13%

Over $15,000

up to $24,000 8% 11.5%

Over $24,000 7% 10%

Married

Filing

Separately Up to $12,500 9% 13%

Over $12,500

up to $20,000 8% 11.5%

Over $20,000 7% 10%

(b) Employment Related Expenses. - The amount of
employment-related expenses for which a credit may be claimed may not exceed
three thousand dollars ($3,000) if the taxpayer's household includes one
qualifying individual, as defined in section 21(b)(1) of the Code, and may not
exceed six thousand dollars ($6,000) if the taxpayer's household includes more
than one qualifying individual. The amount of employment-related expenses for
which a credit may be claimed is reduced by the amount of employer-provided
dependent care assistance excluded from gross income.

(c) Limitations. - A nonresident or part-year resident
who claims the credit allowed by this section shall reduce the amount of the
credit by multiplying it by the fraction calculated under G.S. 105-134.5(b) or
(c), as appropriate. No credit shall be allowed under this section for amounts
deducted in calculating North Carolina taxable income. The credit allowed by
this section may not exceed the amount of tax imposed by this Part for the
taxable year reduced by the sum of all credits allowable, except for payments
of tax made by or on behalf of the taxpayer. (1981,
c. 899, s. 1; 1985, c. 656, ss. 8-11; 1989, c. 728, s. 1.16; 1993, c. 432, s.
1; 1998-98, ss. 69, 99; 1998-100, s. 2; 2006-18, s. 9; 2013-316, s. 1.1(b);
2013-414, s. 5(c).)